AChuckatkins

Wells Fargo and the Wachovia Bid: Crafty or Crazy?

Ishortyou has some excellent ideas. Merely because of its size, WB need to exist as an independent bank. WB has an excellent banking operations and an excellent reputation for customer service but was caught up in the Golden West credit fiasco. The Federal Governent has assisted many other companies and industries. Why not WB? The Fedral Government and the FDIC could do the banking industry a service by assisting in the stability of WB. I believe that is one or should be one of the goals of FDIC. If something doesn't happens soon to stablize some of the big banks we will eventually end up with 4 or 5 giant banks surrounded by a number of small banks that can't compete with the giants. And these small banks will also eventually fade will away by merger and our banking system will consist of only 4 or 5 giant banks like other countries.(period)

I understand the new socalled bailout bill allow assistance in providing additional capital for some of the banks. If the bailout funds are used quickly to take some of the toxic loans off the books of some of the banks it would crate some confidence in the banking system and we could avoid some of these consolidations.

FDIC's action in this matter is tantamount to amputating a person's broken leg instead of providing medical treatment.

Robbing Peter to Pay Paul: More on Wachovia / Citi

I'm glad to see someone (the writer above) has the guts to call a spade a spade. FDIC and Citibank "snookered" Wachovia into to the theft of its banking operations. It was a safe and sound banking operation except from the Golden West fiasco, must of which could have been resoloved with the so called Federal Government "bailout" that was scheduled for a congressional vote a few hours after the announcement of the takeover of Wachovia's banking business. I believe FDIC initiated the takeover to "save face" and "shore up" the weakness of Citibank.

Unless there sre some major changes in further compensating Wachovia shareholders I plan to vote against the acquisition agreement. I am also a Citigroup shareholder so I will vote against the proposals on both proxies. As a retired National Bank Examiner I'll use their description of resolving problem bank issues by consolidating 2 problem banks and create one larger problem bank. In this case, creating the largest problem bank in the country.